According to a new report released by UCLA economists has shown that the unemployment rate in the western state in the US would fall slightly to 8.5 per cent within this year.

A team of economists at the UCLA Anderson Forecast said that the rate of job growth has fallen in the state indicating that the labour issues might impact the jobs market. They pointed out that a large number of California workers' education and training is obsolete for jobs in technology and other industries that seek 21st century skills.

They said that the technology sector, which was a leading sector for recovery in the state, requires people with skills for jobs as programmers, software engineers and other such jobs. This is the reason that the Bay Area as recovered because it hosts a series of tech start-ups. Economists have maintained that the coastal areas have led the recovery in the state compared to low growth in inland areas such as the Central Valley and Inland Empire.

Jerry Nickelsburg, senior economist at the UCLA Anderson Forecast said," Yes, California is growing, but the recovery has not narrowed the gap between the coastal parts of the state and the inland parts of the state. The gap is larger."